Description

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1844 edition. Excerpt: ... paper-money should be confined to a single bank or institution, and be prohibited to be made by any other body politic, or corporate, or person whatsoever, within the realm. But if only a faint idea of the effect of the velocity of circulation on the power of the quantity of "the currency" has been conveyed in the foregoing 5th chapter--the idea of granting or committing by law, the sole power and control over, or even the power of meddling or tampering with, that quantity--always whirling with so inconceivable velocity--to any one body politic or corporate, or any one institution, would seem to be legislative insanity--and it would be stark madness again to give or commit such power to a single joint-stock company or corporation, to be exercised by its directors or managers ad libitum, for the profit of themselves and their partners--as was given to the corporation of the bank of England, and that, moreover, during its stoppage of payment for a quarter of a century, from 1797 to 1822. The proposed constitution of such one bank of issue of all the paper-money of the realm, has not been defined by any of those theorists--that is to say, by what rules, or upon what principle, upon what securities, or for whose profit, issues of such paper-money should be made by the directors or managers of such an institution! The banks or bankers, mentioned in the 5th preceding chapter (70 in London, and, including their branches, 1638 in the country), as carrying on a trade which immensely increases the power, by increasing the velocity of the circulation of the quantity of money, are there considered as banks or bankers of deposit only. But very many, if not most of such banks or bankers (except those in London), issue paper-money, in notes, payable...show more